SINGAPORE (THE BUSINESS TIMES) - The impact of the Covid-19 outbreak on property developer Tuan Sing Holdings' business operations is "largely confined" to its hospitality segment, with its diversified portfolio across segments and regions ensuring a "high degree of resilience", said the group in a corporate update late on Saturday (May 9).
Its hospitality segment comprises less than 15 per cent of its asset portfolio, with commercial and residential segments forming more than 80 per cent, said the group.
Tuan Sing said that revenue and profit for its other investments have "outperformed" year-on-year in its first quarter, but did not reveal figures. It added that it is exploring further upstream of a "significant dividend" from its other investments in the second half of 2020.
The group said that its Singapore development properties Kandis Residence, Mont Botanik Residence and Peak Residence remain on track. Tuan Sing will also benefit from the recent government relief measures announced on May 6, where developers get a six-month extension for the commencement, completion and sale of housing units in residential development projects relating to Additional Buyer's Stamp Duty (ABSD) remission.
Low inventories for development properties are expected to be sold within approaching ABSD deadlines, added Tuan Sing.
In Australia, its Grand Hyatt Melbourne property has temporary suspended operations, and the group is considering the same for Hyatt Regency Perth. Staff from the hotels has also been furloughed during Covid-19 and the temporary suspension.
As for Indonesia, its development plans for Batam Opus Bay and Kura Kura Bali remain on track.
In its outlook, the group said that its fundamentals remain strong despite the impact of Covid-19 and that it is well-positioned to capture pockets of opportunities, such as secure competitive contracts for various projects in anticipation of the eventual upturn.
Correction note: In an earlier version of this article, it was stated that Tuan Sing's revenue and profit have outperformed in Q1. It has been revised to reflect that it was actually the group's other investments, which includes Gul Technologies and Pan-West (Private), that outperformed.